Specialist officers have recovered almost £800,000 in proceeds of crime after a Stone appliance business was defrauded in a scam that led to two men being jailed.
How the fraud was uncovered
The business owners in Stone raised concerns when delivery notes and invoices for packaging supplied by a Stoke-on-Trent company didn’t tally with stock levels in their warehouse.
An internal audit in late 2018 revealed they were being overcharged. Investigators later found that the owner of the packaging company was working with one of the Stone firm’s employees to inflate invoices, create excessive purchase orders and sign false receipts. The pair pocketed the difference while the Stone company was left footing the bill.
Court case and sentencing
Police said the two men benefitted by more than £1.1 million over an 18-month period. Both admitted fraud by false representation and were sentenced in April 2023 to 40 and 42 months in prison.
- The packaging company owner was found to have gained around £750,000.
- The employee from the Stone business obtained £160,000, which he admitted was used to fund his gambling addiction.
Compensation secured for the Stone business
In July this year, a judge ordered the packaging company owner to pay more than £753,000 in compensation. The following month, a confiscation order under the Proceeds of Crime Act secured £796,110.14 for the Stone business that had been defrauded.
Police statement
Samantha Maybury, a fraud specialist in the economic crime unit, said:
“This was a sophisticated fraud that involved two people knowingly steal from a business that they should have been loyal to.
“Though the offenders admitted their criminality in court, it has taken a significant amount of time to secure this outcome for the victim business, which had never seen anything like this before.
“I am pleased that we were able to get some of the money lost back to the victim and hope it reassures others that we will persist in achieving the best possible result for fraud victims whenever we can.”
Ongoing fraud prevention
The case is part of the police Truth or Trap campaign, which highlights the risks of courier, investment and romance fraud.
For more information visit the Staffordshire Police website. Fraud can be reported to Action Fraud on 0300 123 2040 or by calling 101. Call 999 in an emergency.
